To avert congestion at Manila ports, the transportation department and the customs bureau are now resolving differences in the interpretation of a draft administrative order on the jurisdiction over container yards and the facilitation of permits within the South Harbor and the Manila International Container Port.
Transportation Assistant Secretary for Maritime Fernando Perez said the two government agencies have discussed their requirements and are working together to address the need of customs for an area where they can secure seized and abandoned cargoes, among other concerns.
“The free flowing of containers in and out of the port is essential to prevent another port congestion. We don’t want a repeat of 2014. Therefore, it is necessary for all agencies to work together in crafting this customs administrative order,” he said on Monday. After their meeting, the two bodies agreed that the Bureau of Customs (BOC) has the mandate to regulate bonded container yards outside port terminals.
Those inside port terminals, whether operated by Philippine Ports Authority (PPA) or by private operators, should be regarded as components of the entire terminals. Hence, these fall under the supervision of the PPA and should not be treated separately. The collection of fees and permits, as well as licensing within port terminals, shall be under the supervision of the PPA, while those outside shall be handled by the BOC.
“As far as port terminals are concerned, that should still remain with the PPA, but in regard to container yards outside of the ports, that will be under the supervision of the BOC,” said Jay Daniel Santiago, who sits as the general manager of the port regulator.
The previous draft of the order received several questions on the jurisdiction of ports and container yards. It previously allowed the customs bureau to establish temporary storage for overstaying and abandoned cargoes within container port terminals that are under the jurisdiction of the PPA.
“We welcome this development as we continue to improve our system of storage and facilitation of trading goods in partnership with the PPA and our stakeholders,” Customs Project Management Office Manager Althea Acas said.
The draft administrative order is currently being presented to stakeholders for further fine-tuning and amendments, and is pending approval of the finance department.